virgin green, page-28

According to annual report chairman's outlook:

"Our balance sheet remains strong and no additional equity
funding is required" - doesn't mention debt, however, additional V planes will probably be financed off balance sheet - imo. Most reports suggest NTA of at least 80cps and there are orders for narrow bodied aircraft stretching out to 2011 - so there should still be high demand for their relatively young fleet.

On the earnings side; they say they have hedged oil using options - which means they benefit from a falling oil price, but they have insured against the price rising above $112. If they had purchased futures it would be a different story as they would be showing a mark-to-market loss. According to UBS they should earn about $30m with oil at $116 and an additional $6m for every dollar that oil falls below that - on my numbers that stacks up to $222m. I would be happy with half that - would still put them on a p/e of 3ish....yet there are shareholders willing to sell at increasingly lower prices...time will tell - bring on Nov 28th!